Press release
Green Data Center Market Forecast 2025-2034: Evaluating Growth Factors, Segments, and Emerging Trends
Green Data Center Market Size
The escalation of energy usage from data centers is likely to fuel the expansion of the green data center industry. With the surge in digitalization and regulations, data centers are proliferating globally, demanding more electric power for their operation. The rise in the number of data centers equates to an upswing in energy consumption since more electricity is needed to facilitate various data center activities. As energy usage escalates, it will hike operation costs and inflict environmental damage. This is likely to stimulate considerable demand for environmentally compliant green data centers, which operate using renewable energy and offer lower operation costs. For example, the US Energy Information Administration, a US government agency, noted in May 2022 that the United Kingdom generated 934,000 barrels per day (b/d) of total liquid fuels and 1.1 trillion cubic feet (Tcf) of natural gas in 2021. Hence, the escalating energy consumption by data centers is anticipated to stimulate the green data center market's growth.
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What is the projected compound annual growth rate (CAGR) of the green data center market from 2025 to 2034, and what factors influence it?
In recent times, there has been a swift expansion in the size of the green data center market. It is anticipated to escalate from $77.12 billion in 2024 to about $90.2 billion in 2025, experiencing a compound annual growth rate (CAGR) of 17.0%. The advancement in the prior period is due to factors like environmental regulations, surge in energy costs, the need for proficient data storage and management, along with regulations and governmental strategies.
Over the following years, the market size for green data centers is anticipated to undergo substantial growth, estimated to reach $202.29 billion in 2029 with a 22.4% compound annual growth rate (CAGR). This predicted growth during the forecast period can be linked to the expansion of edge computing, proliferation of cloud computing, urgency to decrease carbon emissions, and growth in emerging markets. Some of the leading trends during this prediction period include the advent of liquid cooling solutions, utilization of sustainable materials and designs, development of water-efficient cooling technologies, and integration of renewable energy.
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How are the latest trends influencing the growth of the green data center market?
The rising use of cloud services is a significant trend in the green data center market. These convenient services are provided on-demand via the internet to businesses, eliminating the need for internal infrastructure or hardware. Furthermore, such services also support existing implements like a cloud center or facility. Utilizing cloud services in green data centers allows a more streamlined experience through reduction of complexity while maintaining data ownership and managing the workload efficiently. Market leaders are focusing on incorporating or providing cloud services in their offerings to solidify their market standing. For example, in May 2024, Soluna Cloud, an American green data center developer, introduced the Helix data center. This AI cloud service aims to accommodate clients' growth, responding to the increasing need for eco-friendly data centers powered by renewable energy. [i]
What are the major segments of the green data center market and their role in driving growth?
The green data center market covered in this report is segmented -
1) By Components: Solutions, Services
2) By Data Center Size: Small and Medium-Sized Data Centers, Large Data Centers
3) By Verticals: BFSI, IT and Telecom, Media and Entertainment, Healthcare, Government and Defense, Manufacturing, Other Verticals
Subsegments:
1) By Solutions: Energy Management Solutions, Cooling Solutions, Virtualization Solutions, Renewable Energy Solutions
2) By Services: Consulting Services, Managed Services, Maintenance and Support Services, Training and Education Services
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Which regions are key players in the growth of the green data center market?
North America was the largest region in the green data center market in 2024 and is expected to be the fastest-growing region in the forecast period. The regions covered in the green data center market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Who are the key firms paving the way for growth in the green data center market?
Major companies operating in the green data center market include Schneider Electric SE, Vertiv Holdings Co., Hewlett Packard Enterprise, Green Revolution Cooling, Midas Green Tech LLC, International Business Machines Corporation, Cisco Systems Inc., Dell Inc., Fujitsu Ltd., Hitachi Ltd., Delta Electronics Inc., Rittal GmbH & Co. KG, Eaton Corporation Plc, Nortek Air Solutions LLC, Airedale International Air Conditioning Ltd., Asetek A/S, Bloom Energy Corporation, Carbon Relay Inc., Chatsworth Products Inc., Cologix Inc., CyrusOne Inc., Digital Realty Trust Inc., Equinix Inc., Green House Data Inc., Iron Mountain Inc., Johnson Controls International plc, Legrand SA, Panduit Corporation, Raritan Inc., Server Technology Inc.
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What Is Covered In The Green Data Center Global Market Report?
•Market Size Forecast: Examine the green data center market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the green data center market for a structured understanding.
•Key Players Overview: Analyze major players in the green data center market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the green data center market.
•Segment Contributions: Evaluate how different segments drive overall growth in the green data center market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the green data center market.
•Industry Challenges: Identify potential risks and obstacles affecting the green data center market.
•Competitive Landscape: Review strategic developments in the green data center market, including expansions, agreements, and new product launches.
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